1146 E Valley Pky
Escondido, CA 92025
McDonald's | Long Term NNN Ground Lease · Retail Property For Sale

Lee & Associates is pleased to exclusively offer for sale to qualified investors, the rare opportunity to purchase a fee simple McDonald' s corporate ground lease investment within the highly desirable North San Diego County market. Updated to the most current McDonald' s corporate façade in 2014, the Property consists of a 4,180 square foot building that sits on an approximately 40,075 square foot lot. The Property has been leased to McDonald' s corporate since 1964, enjoying a successful 52 year operating history at this location. McDonald' s is currently on a long-term absolute triple-net (NNN) ground lease giving an investor roughly 16+ years of primary term. The tenant renewed early for an additional 20 years in 2011 and exercised an additional 2-year option to extend the lease through August 31, 2033, reflecting their commitment to the location. The lease is guaranteed by McDonald' s Corp., which has a Standard & Poor' s investment grade credit rating of BBB+. Additionally, the lease features 10% rent increases every 5 years in the primary term and 2% annual increases in the two option periods. The subject property is ideally situated on the signalized hard corner of East Valley Pkwy and North Ash Street (54,000 vehicles per day), within the core retail business district of downtown Escondido. There are more than 190,000 people residing within a 5 mile radius of the property. In addition, McDonald' s is located just 2 miles from the Interstate 15 exit/entrance ramp (192,000 vehicles per day) and California Highway 78 (83,000 vehicles per day) for quick access to downtown San Diego and nearby beaches.